Consider the following two projects: The net present value (NPV)for project beta is closest to ________.
A)$21.67
B)$14.45
C)$18.06
D)$12.64

Name: Consider the following two projects: The net present value (NPV)for project beta is closest to ________. A)$21.67 B)$14.45 C)$18.06 D)$12.64
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Question

Consider the following two projects:  The net present value (NPV)for project beta is closest to ________.
A)$21.67 
B)$14.45 
C)$18.06 
D)$12.64

Quizplus · Accepted Answer

The NPV of project beta can be calculated as follows:
NPV = -100 + (30/1.1) + (30/1.21) + (30/1.331) = 18.06
Therefore, the best choice is C as it has the highest NPV.

Consider the Following Two Projects: the Net Present Value